Many people carry only the minimum liability limits required by law on their auto insurance. This is all well and good, except when you cross a state line. What happens if you don’t have enough car insurance to meet the minimum requirements in the state you’ve crossed into?
For example, Pennsylvania and Maryland share a border. Many people commute across this border on a daily basis. Pennsylvania’s state minimum insurance requires $15,000 per person, $30,000 per accident, and $5,000 property damage (15/30/5.) Maryland requires 30/60/15 and their own special blend of personal injury protection. Your Pennsylvania policy doesn’t provide enough protection to keep you legal. What happens if you have an accident?
Most – not all – auto policies are written with a clause to the effect of “if you travel outside your state of residence, and the state in which you are driving requires more coverage than this policy provides, this policy may be construed to provide the minimum required level of coverage.” In layman’s terms, if you have an accident, the policy will respond with the minimum level of coverage required by the state in which you are driving.
Do bear in mind that each auto policy is a little bit different, and your insurance agent is the only one who can advise you on the specific terms and conditions of your policy. Effective Coverage can provide you with insurance which will meet your needs both in your home state and elsewhere.
As a final, parting note, please also remember that the above applies only within the United States. If you are driving in or through Canada or Mexico, for example, then your coverage may not automatically follow you.
It’s also crucial to remember that it’s possible to have coverage above the state minimum in one state which is still not enough elsewhere. New Jersey auto insurance only requires $5,000 of property damage. That’s basically pocket change, in terms of what it costs to replace some city property. If you buy $15,000 of property damage and then go on a trip, you might find that Texas auto insurance requires $25,000 coverage. Your policy is likely to adjust to that state minimum insurance, not to the same level of additional protection that you have in your home state.
If you have any questions, or for an instant, no obligation comparison of your auto insurance options, contact Effective Coverage at (800)892-4308 or click to get covered - whether you need renters insurance quotes online or coverage anywhere else!
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